Answered: The shareholders' equity of Crystal… | bartleby

The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of OMR 3 million, OMR 6 million, and OMR 20 million in each of its first 3 years of operation: 2017, 2018, 2019, respectively. Common stock, OMR 1 par, 50,000,000 shares outstanding Preferred stock, 5%, OMR 50 par, 2,000,000 shares outstanding Required: Determine the amount of dividends per share on preferred and common stock for each of the three years. The preference shares are cumulative

Intermediate Accounting: Reporting And Analysis

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 15E

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Exercise 6.3

The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of OMR 3 million, OMR 6 million, and OMR 20 million in each of its first 3 years of operation: 2017, 2018, 2019, respectively.

Common stock, OMR 1 par, 50,000,000 shares outstanding

Preferred stock, 5%, OMR 50 par, 2,000,000 shares outstanding

Required:

Determine the amount of dividends per share on preferred and common stock for each of the three years. The preference shares are cumulative

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Exercise 1-41 Stockholders Equity OBJECTIVE o On January 11 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $150,000 cash. No other shares were issued during 2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporations major stockholder sold 300 shares to another stockholder for $50000. The corporation reported net income of $37,500 for 2019. Required: Prepare the stockholders equity section of Mulcahys balance sheet at December 31, 2019.
Entries for selected corporate transactions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows: Common Stock, 20 stated value (500,000 shares authorized, 375,000 shares issued) 7,500,000 Paid-In Capital in Excess of Stated ValueCommon Stock 825,000 Retained Earnings 33,600,000 Treasury Stock (25,000 shares, at cost 450,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of 0.08 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for 28,000. Apr. 10. Issued 75,000 shares of common stock for 24 per share. June 6. Sold all of the treasury stock for 26 per share. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is 25 per share. Aug. 15. Issued shares of stock for the stock dividend declared on July 5. Nov. 23. Purchased 30,000 shares of treasury stock for 19 per share. Dec. 28. Declared a 0.10-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, 1,125,000. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. 3. Prepare a retained earnings statement for the year ended December 31, 20Y6. 4. Prepare the Stockholders Equity section of the December 31, 20Y6, balance sheet.

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